Part 3/9:
Over-reliance on Capital Flow: The Chinese economy has become over-capitalized, making it highly dependent on the continuous influx of cheap capital. If access to capital diminishes, it could lead to the rapid deterioration of various economic sectors. This scenario poses an existential threat to China’s industrialized state.
Demographic Decline: China faces a looming demographic crisis, exacerbated by severe birth rate declines. Most notably, the average woman is now having fewer than half a child, leading to a dwindling young population that fuels economic consumption. As a result, the country is likely to confront a graying population with a demographic imbalance that could destabilize its workforce and economic growth.